Rising interest payments are putting UK companies at a higher risk of missing their debt payments, the Bank of England has warned. Analysis by the UK’s central bank found half of all non-financial companies could experience debt stress by the end of the year, up from 45% in 2022. Medium-sized firms – those with an annual turnover between £10m and £500m – are particularly vulnerable, with 70% already experiencing debt stress, the highest since the 2008 financial crisis. Defaults could threaten financial stability and worsen future downturns through lower corporate investment and hiring, reports the Financial Times. Ruth Gregory, an analyst at Capital Economics tells the FT that while company defaults could increase, they may not be as bad as past crises because many small and medium companies locked in low-interest-rate loans during the pandemic.